Keidanren Under New Tsutsui Leadership: Strong Ability to Communicate Needed to Overcome Difficult Situation

Editorial

17:54 JST, June 2, 2025

The tariff policies of U.S. President Donald Trump are shaking the world, causing major changes to the global economic order. As a leader in the business community, Keidanren (Japan Business Federation) must convey its messages strongly to overcome this difficult situation.

Yoshinobu Tsutsui, former chairman of Nippon Life Insurance Co., has taken office as the 16th chairman of Keidanren. This is the first time for a figure from a financial institution to assume the post, whose past holders have mainly been people from the manufacturing industry.

Nippon Life Insurance is a leading institutional investor with in-depth knowledge of the management of a wide range of companies. To break out of the long period of stagnation known as the “lost 30 years,” Keidanren under Tsutsui must take the lead in discussions on the state of government economic policies and corporate management.

The first test will be how to maintain the trend of wage increases.

In an effort to achieve a growth-oriented economy in which both wages and investment increase, historically high wage increases have continued at major companies for three consecutive years, including this year’s shunto spring wage negotiations.

However, amid growing uncertainty over the future due to the U.S. high tariff policy, the momentum for wage hikes at small and midsize companies is weakening, and dark clouds are looming over major companies’ shunto negotiations next year.

“Extremely powerful momentum for wage increases has been established. The most important task now is to further cement this trend,” Tsutsui said. He must take the lead in the wage hike movement and make it spread throughout Keidanren’s member companies.

The internal reserves of Japanese companies have risen to about ¥600 trillion, which should provide sufficient capacity for investment and wage increases. It is the responsibility of member companies to continue investing aggressively and raising wages even in the face of headwinds.

Stabilizing the social security system and dispelling future concerns are important tasks even for corporate management.

Tsutsui has stated that “it is not appropriate to reduce consumption tax,” as it is a fundamental source of revenue supporting the social security system. This is a valid point.

Close attention must be paid to changes in the global economic order. The United States will likely maintain its protectionist stance for some time. The free trade system centered on the United States is wavering, and the foundation of Japan’s economic growth is being shaken.

Tsutsui has announced a plan to establish a Global South committee within Keidanren and strengthen ties with emerging and developing countries. It is important to deepen relations with India and the Association of Southeast Asian Nations.

It is necessary to devise a strategy to reduce dependence on the United States, expand sales channels to other countries and regions and continue economic growth.

Toyota Motor Corp. President Koji Sato is among the four people to newly assume a vice chair post. It has been a long time since a Toyota president has held that job. It is hoped that he will bring new energy to Keidanren by leveraging his experience as the head of Japan’s largest manufacturing company.

(From The Yomiuri Shimbun, June 2, 2025)